Open Banking Bank Strategies

Transcription

1 Open Banking Bank Strategies How The image part can with relationship we ID rid3 was fix not found the in file. identity problem? v2 What are the retail banks broad strategic options in an open banking era? David G.W. Birch (15Mb Ltd) BETALINGSFORMIDLING (Trondheim, March Please copy and distribute (last updated 12 March 2018) 1

2 David G.W. Birch author, advisor and commentator Global top 15 favourite sources of business information (Wired Magazine); London FinTech Top 10 most influential commentators (City A.M.); Top 20 Fintech Influencer (JAX London); Top five Leader in IDentity (Rise); Top 10 Twitter account followed by innovators, alongside Bill Gates and Richard Branson (PR Daily); Top 10 most influential voices in banking (Financial Brand); Top 50 blockchain insider (Richtopia); Europe s most influential commentator on emerging payments (Total Please copy and distribute (last updated 12 March 2018) 2

3 Technology and Banking A model for shared Please copy and distribute (last updated 12 March 2018) 3

4 The Big Picture: Banking Please copy and distribute (last updated 12 March 2018) 4

5 Banking Please copy and distribute (last updated 12 March 2018) 5

6 Regulatory Please copy and distribute (last updated 12 March 2018) 6

7 @dgwbirch Please copy and distribute (last updated 12 March 2018) 7

8 A Note on Payments Payment revenues heading to zero Payments data more important than Please copy and distribute (last updated 12 March 2018) 8

9 Regulatory Pressures The era of open banking in Europe as a whole and the UK in Please copy and distribute (last updated 12 March 2018) 9

10 European Please copy and distribute (last updated 12 March 2018) 10

11 OBWG in the UK The Open Banking Working Group (OBWG) is working in response to the UK Treasury to create A data model (so that everyone knows what "account", "amount", "account holder" etc means); An API standard (for reading consumer data); A security standard; A governance Please copy and distribute (last updated 12 March 2018) 11

12 CMA in the UK In August 2016, the Competition and Markets Authority (CMA) published the final report for its retail banking Market Investigation It set out a package of remedies aimed at increasing innovation and improving competition, including requirement for the nine largest current account providers to make available to authorised third parties: Standardised product and reference data (by 31 March 2017); With customer consent, secure access to specific current accounts in order to read the transaction data and initiate payments (by January 2018). This information must be shared through an open Application Programming Interface (API) framework Open Banking Implementation Entity to develop the API Standards Paid for by the Please copy and distribute (last updated 12 March 2018) 12

13 New Payment Strategy for the Please copy and distribute (last updated 12 March 2018) 13

14 Bank Responses Options for API-based Please copy and distribute (last updated 12 March 2018) 14

15 The Open Banking Please copy and distribute (last updated 12 March 2018) 15

16 Open Banking Please copy and distribute (last updated 12 March 2018) 16

17 Please copy and distribute (last updated 12 March 2018) 17

18 Why Focus on Identity? Source: Accenture (July Please copy and distribute (last updated 12 March 2018) 18

19 Use Cases for Exploring Ideas What might an open banking world look Please copy and distribute (last updated 12 March 2018) 19

20 Use Case: Information Comparison Please copy and distribute (last updated 12 March 2018) 20

21 Use Case: Financial Services Review and Please copy and distribute (last updated 12 March 2018) 21

22 Use Case: Payments PSD2 and Instant Payments to drive a 37% decline in online card volumes Boosted by increased consumer convenience, Instant Payments will overtake cards by 2025 Retail Instant Payments in Europe will hit 725bn in transactions Single card payments set to decline from 40% to 11% market share Instant Payments will become one of the main online payment tools in Europe, accounting for roughly 338bn of direct online expenditure Forecasts for 2027 by Icon (July Please copy and distribute (last updated 12 March 2018) 22

23 Use Case: Identity Internet Please copy and distribute (last updated 12 March 2018) 23

24 Open Banking Core Strategy Where should banks Please copy and distribute (last updated 12 March 2018) 24

25 Identity is the New Money It s not about payment. It s about identity Jack Dorsey, Founder of Square New York Times (22nd December Please copy and distribute (last updated 12 March 2018) 25

26 Commonwealth Example: Please copy and distribute (last updated 12 March 2018) 26

27 in the future, everyone will be famous for fifteen megabytes engage dgwbirch limited post 1 Armadale Road, Woking, Surrey GU21 3LB, UK call contact mail@dgwbirch.com visit comment blog.dgwbirch.com connect order amazon.co.uk Before Babylon, Beyond Please copy and distribute (last updated 12 March 2018) 27